World Bank Employment Policy Primer

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The World Bank Employment Policy Primer aims to provide a comprehensive, up-to-date resource on labor market policy issues. These short notes are concise summaries of best practice on various topics.

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    Unemployment Insurance Simulation Model (UISIM)
    (World Bank, Washington, DC, 2008-12) Fares, Jean ; Vodopivec, Milan
    This note describes the key features of the Unemployment Insurance Simulation Model (UISIM) - how the model is structured, what data inputs are needed, and what outputs the model generates (the model comes with user's and technical manuals, which provide detailed information about how to operate the model and how it calculates the outputs). For illustrative purposes, the note also presents an example where the model is used to generate simulations for a countrywide unemployment insurance (UI) system. The appendix to the note describes typical data sources and provides a detailed description of requisite data.
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    Training Levies : Evidence from Evalualtions
    (World Bank, Washington, DC, 2004-04) Dar, Amit
    This note examines one of the most commonly used techniques for generating resources from employers - payroll levies. In many countries payroll taxes on enterprises (with reimbursement for training undertaken) have become a significant source of financing for skills training, both in specialized training institutions and in enterprises.
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    Public Employment Services : Functions and Innovations
    (World Bank, Washington, DC, 2003-09) Dar, Amit
    Public Employment Services (PES) in industrialized countries have traditionally provided job-brokering services - arranging for jobseekers to obtain jobs and employers to fill vacancies. Increasingly, they also administer unemployment benefits and provide for the delivery of labor market programs. PES are still in their initial stages in developing countries where many still play the traditional role of job placement and registering the unemployed. There are several good arguments for the provision of employment services. By transmitting information, they can contribute to labor-market efficiency and transparency. PES can also promote equity in access to the labor market and help disadvantaged workers find employment. Furthermore, in countries that have an unemployment benefit system, public employment services, if well designed, can play an important role in verifying eligibility for receiving benefits and reduce costs associated with unemployment through ensuring rapid matches.
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    Employment Regulation : Rules for Hiring and Termination
    (World Bank, Washington, DC, 2002-12) Betcherman, Gordon
    Employment protection - the set of rules governing hiring and terminating employees - is a key feature of any country's labor market. What types of contracts will be permitted between employers and employees? Under what conditions can the relationship be terminated? What are the requirements for providing advance notice? What are the obligations of the employer regarding severance or termination payments? These are important questions for policy-makers in addressing the trade-offs between labor market flexibility and the economic security of employed workers. A mix of cultural norms, collective bargaining, and legislation determines employment protection practices in any country. This primer note focuses on the statutory regulations affecting employment protection. It provides a basic overview of the policy options and a summary of what is known about their impacts on workers and on the labor market. It also addresses the institutional and political aspects of employment protection.